Rental Property Investment Model — Buy, Hold, Exit: 10-Year Cash Flow, Yields & Equity IRR

The Rental Property Investment Model tells you whether a buy-to-let is actually a good deal across the entire hold period, not just in year one. It projects ten years of rent, expenses, the loan, cash flow, property value and equity, then computes the returns that matter to an investor.

What it does: it models rent net of vacancy and management, operating expenses with inflation, and a loan handled properly — an interest-only period followed by principal-and-interest over the remaining term. Set the hold period anywhere from one to ten years and the exit analysis, IRR and sensitivity grid all update automatically. The Returns sheet shows gross and net yield, cash-on-cash return by year, net exit proceeds at your chosen sale year, total profit, the equity multiple and the after-tax equity IRR.

Main features: 10-year annual projections; yield and cash-on-cash metrics; a realistic loan with an interest-only period then P&I; exit analysis at the end of the chosen hold; total profit, equity multiple and after-tax IRR; and a two-way sensitivity grid showing total profit across rent levels (±10%) and capital growth (0–6%). 329 live formulas, with the IRR independently verified.

How to work with it: overwrite the blue input cells with your own deal; the yellow-filled cells are the key value drivers to start with. Change the hold period on the Assumptions sheet and everything downstream recalculates.

Why you need it: the model is honest about its limits — the cover discloses annual loan modelling, a flat tax on positive net rental income with no loss carry-forward, and a renovation budget treated as cash in but not added to value. It ships fully unlocked, every formula visible, so you can trust the number by tracing it. It is equally useful for a first-time investor sizing a single purchase and for a landlord comparing several properties on a like-for-like basis before deciding where to put the next deposit. Currency-agnostic; treat $ as your currency. For analysis only, not investment advice.

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